China Hyperscale Data Center Market Size
Market Overview
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 22.01 Billion |
| Market Size (2030) | USD 59.46 Billion |
| Growth Rate (2025 - 2030) | 21.00% CAGR |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
China Hyperscale Data Center Market Analysis
The China Hyperscale Data Center Market size is estimated at USD 22.01 billion in 2025, and is expected to reach USD 59.46 billion by 2030, at a CAGR of greater than 21% during the forecast period (2025-2030).
China's expansion is closely linked to the country’s national computing power plan and the rapid uptake of artificial-intelligence workloads, both of which raise demand for GPU-dense infrastructure. An emerging implication is that local component makers gain a larger share of supply contracts as geopolitical pressures limit imported equipment. Eastern provinces remain capacity leaders, yet the steady build-out of renewable power in the west signals a dual-hub model that spreads risk and promotes grid stability. In turn, operators find that placing new facilities near wind or solar farms helps them meet energy-efficiency rules without paying urban electricity premiums.
Rising construction activity lifts competition, and the China Hyperscale Data Center industry now hosts cloud providers, telecom carriers, and specialist colocation firms that pursue different scaling paths. A direct effect is faster design cycles: large builders require less than nine months to deliver a new 10 MW hall, compared with timelines that once exceeded 18 months. Cutting that window lets users migrate artificial-intelligence training jobs sooner, which raises utilization rates and accelerates payback periods. The policy requirement for power usage effectiveness (PUE) below 1.5 by 2025 keeps technology vendors focused on liquid cooling, efficient switch silicon, and waste-heat capture. As a result, solution diversity widens while cost convergence narrows, giving customers greater choice yet smaller price gaps among suppliers.
China Hyperscale Data Center Market Trends
AI Workload Impact: GPU-Packed Racks Transform Power Density Requirements
Racks configured for artificial-intelligence training now demand 40 kW to 140 kW, several times the historical 5 kW to 15 kW range. This shift forces data-center architects to adopt new cooling layouts, dense bus-duct power feeds, and reinforced floor loading, which collectively raise the build cost per megawatt. Facilities designed around those parameters secure higher leasing premiums, a trend that motivates owners to retrofit legacy halls where feasible. One early payoff is that domestic GPU manufacturers win design wins that previously flowed to foreign brands.
Innovations in Liquid Cooling: Immersion Technology Addresses Sustainability Challenges
Single-phase immersion tanks, direct-to-chip cold plates, and rear-door heat exchangers are moving from proof-of-concept to baseline specification in new Chinese hyperscale builds. Operators report cooling energy savings of up to 80 %, enabling them to hit PUE targets without exotic building modifications. A further advantage is the ability to stack more servers per rack, raising white-space compute density by around 300 %. This improvement frees site planners to consider smaller land parcels close to fiber routes, an option that helps balance expansion costs against urban real-estate prices.
AI-Based Data Center Management Adoption Reshapes Operational Paradigms
Artificial-intelligence models embedded in data-center-infrastructure-management (DCIM) suites now track thermal drift, power anomalies, and hardware failure signals in near real time. Predictive alerts shorten fault-finding cycles from days to minutes, which increases engineer productivity and minimizes unplanned downtime. Software that correlates workload placement with live PUE also guides scheduler decisions, ensuring high-density AI racks stay within facility thermal limits. The broader impact is a cultural shift toward software-defined facilities where algorithms, rather than people, handle daily optimisation tasks.
Data Center Type: Self-Build Dominates While Colocation Accelerates
The China Hyperscale Data Center market size in the self-build segment retains the largest share, estimated at well above half of the total installed megawatts in 2024. Enterprises choose self-build to keep sensitive workloads within a controlled perimeter and to optimise designs for proprietary AI chips. One consequence is that campus footprints are growing in non-urban zones where land and power are cheaper, signalling a geographic shift in future builds. As these giant campuses go live, they absorb regional grid capacity, nudging local authorities to fast-track renewable connections that stabilize supply.
Hyperscale colocation, although smaller by market share, posts a faster growth rate as firms seek low-risk entry to AI infrastructure. Leasing enables medium-sized technology companies to tap liquid-cooling-ready halls without the capital burden of land purchase and power-access negotiations. Providers note that average contract length is rising, implying customers view leased space as a strategic rather than a stopgap solution. This behaviour encourages colocation operators to standardise modular build templates, a change that shortens delivery lead times and improves cost predictability.
Service Type: IaaS Dominates While PaaS Gains Momentum
Infrastructure-as-a-Service commands roughly three-quarters of China Hyperscale Data Center market share for cloud services, underpinned by organisations migrating legacy applications to virtual machines and object storage. The appeal lies in granular resource control, which lets users fine-tune performance for AI model training bursts. As workloads scale, providers introduce tiered GPU instances that shift idle accelerators to spot pools, an approach that lifts utilisation and lowers client bills. This strategy hints that future IaaS value will hinge less on raw capacity and more on scheduling intelligence.
Platform-as-a-Service records the fastest CAGR within the China Hyperscale Data Center industry, as developers opt for managed middleware, databases, and AI toolchains to accelerate time to market. A notable trend is the bundling of small language models inside PaaS environments, allowing companies to test generative-AI features without large upfront data-science teams. Increased uptake generates cross-sell opportunities for security add-ons, illustrating how service tiers interact rather than compete. Over time, the boundary between PaaS and IaaS blurs, and integrated stacks may redefine purchasing categories.
End User: Cloud & IT Leads While Government Accelerates
Cloud and IT companies account for the largest proportion of the China Hyperscale Data Center market size, mirroring the scale of domestic consumer platforms and software-as-a-service vendors. Continuous algorithm upgrades spur demand for short-cycle GPU clusters, making hyperscale footprints a core competitive asset. A knock-on effect is heightened energy-contract hedging, as operators lock green-power quotas to protect against price spikes. This behaviour stabilises long-term project economics and influences how renewable developers structure offtake agreements.
Government workloads mark the fastest-growing slice of demand, propelled by national digital-government programmes that emphasise data sovereignty and security. New multi-tenant halls must therefore adopt specialised compliance zones that segregate public-sector racks from commercial clients. The presence of these zones fosters higher baseline security standards across entire campuses, benefitting all tenants indirectly. In parallel, provincial governments pilot public-private compute clouds that let smaller agencies access advanced AI resources without building dedicated facilities.
China Hyperscale Data Center Industry Overview
Hypercale Data Center Market is Partially Fragmented in China
Competition in the China Hyperscale Data Center market is moderately concentrated, with three spheres of influence: cloud providers, telecom carriers, and pure-play colocation companies. Cloud firms leverage proprietary AI chips and in-house fabric software to differentiate performance, setting a high technical bar for newcomers. Telecom carriers, owning nationwide fibre backbones and power rights-of-way, pivot from network reselling to integrated compute-connect bundles, thereby extending account stickiness. An immediate implication is that winning deals increasingly rest on combined compute and network service-level commitments, not just price per kilowatt.
Specialised colocation operators attract clients that seek neutrality, offering carrier-dense meet-me rooms and open access to multiple cloud on-ramps. These firms chase scale through rapid land banking in power-rich counties, then finance builds via long-dated green loans, which keeps balance-sheet leverage within lender comfort zones. As financial institutions tie borrowing costs to environmental targets, operators with clear decarbonisation roadmaps gain rate advantages that ripple into service pricing. Thus, capital-market dynamics now influence competitive hierarchy almost as strongly as technical specs.
Strategic alliances have become central to sustaining differentiation. For instance, cloud platforms collectively integrate domestic large language models, ensuring cross-cloud portability for developers and seeding broad ecosystem adoption. In practice, this cooperation reduces vendor-lock concerns, which encourages enterprises to diversify provider portfolios. The resulting multi-cloud trend intensifies pressure on each vendor to maintain best-in-class runtime efficiency, because workload mobility allows customers to react quickly to performance gaps.
China Hyperscale Data Center Market Leaders
-
Alibaba Cloud
-
Tencent Holdings Ltd.
-
China Telecom Global Limited
-
Huawei Technologies Co., Ltd.
-
GDS Holdings Limited
- *Disclaimer: Major Players sorted in no particular order
China Hyperscale Data Center Market News
- January 2025: ByteDance announced the development of a USD 614 million AI data center in Shanxi province, significantly expanding its hyperscale infrastructure.
- November 2024: Chindata Group announced plans to secure a USD 2.8 billion loan to support its operations and expansion in the hyperscale data center market.
- March 2024: China Unicom announced a procurement of 12,045 data center switches and 2,503 AI servers, enhancing the domestic computing power supply chain.
China Hyperscale Data Center Industry Segmentation
Hyperscale data centers, also known as Enterprise colocation/cloud hyperscale facilities, are large-scale infrastructures owned and managed by the companies they support. These centers deliver a wide range of scalable applications and storage services to meet the needs of individuals and businesses. Designed for efficiency, they house thousands of servers alongside critical hardware like routers, switches, and storage disks. To ensure seamless operations, these facilities are equipped with advanced support systems, including power and cooling solutions, uninterruptible power supplies (UPS), and air distribution networks.
The China Hyperscale Datacenter Market is Segmented by Data Center Type (Hyperscale Colocation, Enterprise/Hyperscale Self Build), By Service Type (IaaS ( Infrastructure-as-a-Service), PaaS ( Platform-as-a-Service), SaaS( Software-as-a-Service)), By End User (Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce, Other End User). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of USD (millions).
| By Data Center Type | Hyperscale Colocation |
| Enterprise/Hyperscale Self Build | |
| By Service Type | IaaS ( Infrastructure-as-a-Service) |
| PaaS ( Platform-as-a-Service) | |
| SaaS( Software-as-a-Service) | |
| By End User | Cloud & IT |
| Telecom | |
| Media & Entertainment | |
| Government | |
| BFSI | |
| Manufacturing | |
| E-Commerce | |
| Other End User |
| Hyperscale Colocation |
| Enterprise/Hyperscale Self Build |
| IaaS ( Infrastructure-as-a-Service) |
| PaaS ( Platform-as-a-Service) |
| SaaS( Software-as-a-Service) |
| Cloud & IT |
| Telecom |
| Media & Entertainment |
| Government |
| BFSI |
| Manufacturing |
| E-Commerce |
| Other End User |
China Hyperscale Data Center Market Research Faqs
How big is the China Hyperscale Data Center Market?
The China Hyperscale Data Center Market size is expected to reach USD 22.01 billion in 2025 and grow at a CAGR of greater than 21% to reach USD 59.46 billion by 2030.
What is the current China Hyperscale Data Center Market size?
In 2025, the China Hyperscale Data Center Market size is expected to reach USD 22.01 billion.
What years does this China Hyperscale Data Center Market cover, and what was the market size in 2024?
In 2024, the China Hyperscale Data Center Market size was estimated at USD 17.39 billion. The report covers the China Hyperscale Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the China Hyperscale Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
